VC Aileen Lee highlights how the broader investor exodus is worsening woes for unicorn companies

In this week’s episode Downloading Strikelivies Podcast, Veterran VC Eileen Lee was directly about a major consequence of the recent boom-and-stream-cycle cycle: many companies stuck in Limbo are not fighting to regain their steps after collecting too much money in unprotected assessment; They also lost the champions who once supported them.

Lee was discussing how the limited partners were hesitant to criticize strong fund directors, feared that they would refrain from investing in these companies again. But he imagined a thing that they would speak freely if they would say:

“Everyone wants to go to the X brand name fund and so they will never criticize them [for fear of repercussions] The The They probably talk about us on the back of our backs [laughs].. . But they will say whatever they say [that] There are all the people [were] These initiatives have been rented during the Zirp era. The The They have invested a bunch of crooks ”and now they are being tied up – it’s not too late, Li observes.” All [the LPs’] The money was basically just thrown into the drain because the employees of the initiative were not enough to see if the companies were successful. ”

This is not the fault of these new investors, Lee also said. “Only one ton of people were not trained and no mentor or apprentice was given a checkbook, and a lot of investment was made. The Out there are plenty of orphans, ”as a result.

But there is one more reason why startups are being released on their own device “and I found this mad,” Lee said; In many cases, companies have been orphaned by more senior general partners “who led the investment – who still remain [at the firm] However, the board meetings have just been stopped. “

This has been happening for years at the moment. No one has done so properly during the Go-Go Covid era of funds, and the corner cutting has never stopped in the same investment. But this is a key reason that many companies are struggling to find outside assistance in exit strategies and why LPS will be justified to say more disappointment.

As another long -term VC, Jason Lamkin, This is to say to the editor At the end of the 2022 when the VCS first stopped showing in the board meetings of the startups that began to lose speed: “[S]There will be no checks and balances? Pension funds and universities and widows and orphans are invested several million and millions of millions and you do not do any perseverance on the way and you do not work in the board meeting, you are canceling your LPS some of your loyal duties, right? “

Check out Downloading Strikelivies Weekly; New episodes are published every Tuesday.